The largest European banks by assets

According to CNBC, the European Union will stress-test its 25 largest banks in much the same way as the US has done. There has been considerable wrangling on whether the results of the stress tests will be publicly available on a per-institution basis. The latest I have heard is that all countries are onboard with releasing stress test results for all individual institutions tested.

Therefore, I have compiled four lists of banks below.

The first is a list of the largest Eurozone banks by assets according to data I compiled via the Forbes Global 2000 list. This excludes non-Eurozone banks from nations like the UK or Denmark but includes ING Groep as a bank.

The second is the same list but also including the non-Eurozone banks.

The third list is a list of the largest European banks by assets would include any Swiss, Russian, Norwegian or other European banks.

Finally, the fourth list is just a global list as a reference point on size. The list now includes all of the too-big-to-fail US institutions.

A few comments first.

Undercapitalised Europe

The Eurozone banks are less well-capitalised than US banks. If you recall, last year I went through this exercise (see The top 25 European banks by assets) because of an article in the Telegraph which indicated that European banks were sitting on 16.3 trillion in toxic assets. I expect that many of the toxic assets that were on European bank balance sheets in February 2009 are still on their balance sheets at cost i.e. without having been written down. This is why I think the European banks are undercapitalized and why the stress tests are happening.

As for stress tests, I think they are of dubious value. However, in a November post I presented both sides of the argument on the US Treasury’s handling of the credit crisis – with the stress test and liquidity/solvency issues front and centre:

Of course the stress tests were a sham. They were a confidence trick to raise more capital and buy time for the banks to earn yet more still. The point was to allow the banks to ease into their losses. And that’s exactly what’s been happening for the past year.

So, if the European stress tests are equally ‘successful,’ the European bank liquidity crisis will fade and we will see banks raising much needed debt and equity capital in the market instead of having the government inject capital.

The view of the stress tests I presented in March is still operative:

If I had to summarize these thoughts I would say the stress tests were a mock exercise to instil confidence in the capital markets. This was important first and foremost because it would induce private investors to pay for bank recapitalization instead of taxpayers. But it was also important for the economy as a whole as the sick banking sector was dragging the whole economy down. The key, however, is that the tests were a mock exercise. Despite the additional capital, banks are still hiding hundreds of billions of dollars in losses in level three, hold to maturity, and off balance sheet asset pools. If asset prices fall and/or the economy weakens, all of this subterfuge would be for nought.

The same issues are at play in Europe. If recovery continues, I fully expect the biggest and best capitalized to escape trouble and be home free. This is important as many of them are too big to bail. However, if recovery fades and asset prices fall again, we are in big trouble across the board. And you should expect bankruptcies and bailouts all around – just a warning.

Top 40 Eurozone Banks By Assets

BNP Paribas

France

2,952.22

Crédit Agricole

France

2,227.22

Deutsche Bank

Germany

2,150.60

ING Group

Netherlands

1,667.62

Société Générale Group

France

1,468.72

UniCredit Group

Italy

1,438.91

Banco Santander

Spain

1,438.68

Commerzbank

Germany

1202.99

Intesa Sanpaolo

Italy

877.66

Dexia

Belgium

828.74

Natixis

France

769.48

BBVA-Banco Bilbao Vizcaya

Spain

760.39

KBC Group

Belgium

462.66

CIC Group

France

351.15

Deutsche Postbank

Germany

325.12

Banca MPS

Italy

292.22

Erste Bank

Austria

278.9

Bank of Ireland

Ireland

256.98

Allied Irish Banks

Ireland

249.26

Banque Nat de Belgique

Belgium

212.96

Landesbank Berlin

Germany

200.8

Banco Popular Español

Spain

185.5

SNS Reaal

Netherlands

184.22

UBI Banca

Italy

168.46

Banco Popolare

Italy

166.15

National Bank of Greece

Greece

140.48

BCP-Banco Com Português

Portugal

136.25

Raiffeisen International Bank

Austria

118.58

Banco de Sabadell

Spain

117.85

EFG Eurobank Ergasias

Greece

113.92

CAM Group

Spain

108.25

Espirito Santo Finl

Luxembourg

108.15

Bank of Greece

Greece

98.58

Alpha Bank Group

Greece

90.26

Bankinter

Spain

78.06

Piraeus Bank

Greece

75.95

Volksbank

Austria

73.06

BPER-Emilia Romagna

Italy

73.05

Banca Popolare di Milano

Italy

62.26

IKB

Germany

59.02

Top 40 EU Banks By Assets

BNP Paribas

France

2,952.22

Royal Bank of Scotland

United Kingdom

2,727.94

HSBC Holdings

United Kingdom

2,355.83

Crédit Agricole

France

2,227.22

Barclays

United Kingdom

2,223.04

Deutsche Bank

Germany

2,150.60

ING Group

Netherlands

1,667.62

Lloyds Banking Group

United Kingdom

1,650.78

Société Générale Group

France

1,468.72

UniCredit Group

Italy

1,438.91

Banco Santander

Spain

1,438.68

Commerzbank

Germany

1202.99

Intesa Sanpaolo

Italy

877.66

Dexia

Belgium

828.74

Natixis

France

769.48

BBVA-Banco Bilbao Vizcaya

Spain

760.39

Nordea Bank

Sweden

729.06

Danske Bank Group

Denmark

597.03

KBC Group

Belgium

462.66

Standard Chartered Group

United Kingdom

435.56

CIC Group

France

351.15

Deutsche Postbank

Germany

325.12

SEB-Skand Enskilda Bank

Sweden

323.28

Svenska Handelsbanken

Sweden

297.27

Banca MPS

Italy

292.22

Erste Bank

Austria

278.9

Bank of Ireland

Ireland

256.98

Swedbank

Sweden

251.18

Allied Irish Banks

Ireland

249.26

Banque Nat de Belgique

Belgium

212.96

Landesbank Berlin

Germany

200.8

Banco Popular Español

Spain

185.5

SNS Reaal

Netherlands

184.22

UBI Banca

Italy

168.46

Banco Popolare

Italy

166.15

National Bank of Greece

Greece

140.48

BCP-Banco Com Português

Portugal

136.25

Raiffeisen International Bank

Austria

118.58

Banco de Sabadell

Spain

117.85

EFG Eurobank Ergasias

Greece

113.92

Top 40 European Banks By Assets

BNP Paribas

France

2,952.22

Royal Bank of Scotland

United Kingdom

2,727.94

HSBC Holdings

United Kingdom

2,355.83

Crédit Agricole

France

2,227.22

Barclays

United Kingdom

2,223.04

Deutsche Bank

Germany

2,150.60

ING Group

Netherlands

1,667.62

Lloyds Banking Group

United Kingdom

1,650.78

Société Générale Group

France

1,468.72

UniCredit Group

Italy

1,438.91

Banco Santander

Spain

1,438.68

UBS

Switzerland

1,288.19

Commerzbank

Germany

1202.99

Credit Suisse Group

Switzerland

988.91

Intesa Sanpaolo

Italy

877.66

Dexia

Belgium

828.74

Natixis

France

769.48

BBVA-Banco Bilbao Vizcaya

Spain

760.39

Nordea Bank

Sweden

729.06

Danske Bank Group

Denmark

597.03

KBC Group

Belgium

462.66

Standard Chartered Group

United Kingdom

435.56

CIC Group

France

351.15

Deutsche Postbank

Germany

325.12

SEB-Skand Enskilda Bank

Sweden

323.28

DnB NOR

Norway

315.61

Svenska Handelsbanken

Sweden

297.27

Banca MPS

Italy

292.22

Erste Bank

Austria

278.9

Bank of Ireland

Ireland

256.98

Swedbank

Sweden

251.18

Allied Irish Banks

Ireland

249.26

Sberbank

Russia

220.62

Banque Nat de Belgique

Belgium

212.96

Landesbank Berlin

Germany

200.8

Banco Popular Español

Spain

185.5

SNS Reaal

Netherlands

184.22

UBI Banca

Italy

168.46

Banco Popolare

Italy

166.15

National Bank of Greece

Greece

140.48

Top 40 Banks in the World By Assets

COMPANY

COUNTRY

ASSETS ($BIL)

BNP Paribas

France

2,952.22

Royal Bank of Scotland

United Kingdom

2,727.94

HSBC Holdings

United Kingdom

2,355.83

Crédit Agricole

France

2,227.22

Bank of America

United States

2,223.30

Barclays

United Kingdom

2,223.04

Deutsche Bank

Germany

2,150.60

JPMorgan Chase

United States

2,031.99

Mitsubishi UFJ Financial

Japan

1,999.58

Citigroup

United States

1,856.65

ING Group

Netherlands

1,667.62

Lloyds Banking Group

United Kingdom

1,650.78

Mizuho Financial

Japan

1,538.94

Société Générale Group

France

1,468.72

UniCredit Group

Italy

1,438.91

Banco Santander

Spain

1,438.68

ICBC

China

1,428.46

UBS

Switzerland

1,288.19

Wells Fargo

United States

1,243.65

Commerzbank

Germany

1202.99

Sumitomo Mitsui Financial

Japan

1,202.59

China Construction Bank

China

1,106.20

Bank of China

China

1,016.31

Credit Suisse Group

Switzerland

988.91

Intesa Sanpaolo

Italy

877.66

Fannie Mae

United States

869.14

Goldman Sachs Group

United States

849.00

Freddie Mac

United States

841.78

Dexia

Belgium

828.74

Morgan Stanley

United States

771.46

Natixis

France

769.48

BBVA-Banco Bilbao Vizcaya

Spain

760.39

Nordea Bank

Sweden

729.06

Royal Bank of Canada

Canada

608.05

Danske Bank Group

Denmark

597.03

National Australia Bank

Australia

574.41

Westpac Banking Group

Australia

519.03

Toronto-Dominion Bank

Canada

517.28

Commonwealth Bank

Australia

500.2

KBC Group

Belgium

462.66

*Note: This list includes all banks and diversified financial institutions that are privately-held i.e. not owned exclusively by government. So, it excludes the German Landesbanks and the Spanish Cajas but it includes the likes of RBS and Lloyds. It excludes insurance companies except ING (because of its significant banking operations). It excludes Berkshire Hathaway (an insurance company) which is listed as a diversified financial but includes Fannie Mae and Freddie Mac which are also listed as diversified financials.

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Author: Edward HarrisonEdward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.